Arima Real Estate Socimi Sa · BME:ARM
Arima Real Estate Socimi Sa — H1 2022 Earnings Presentation
31 slides from Arima Real Estate Socimi Sa's earnings presentation, 2022
Slide 1: Half Year Results 2022
THE VISION FOR EXCELLENCE 2022 Half Year Results arimainmo.com
Slide 2: 1H 2022 at a glance
EXECUTIVE SUMMARY HALF YEAR RESULTS 2022 1H 2022 at a glance PORTFOLIO REDEVELOPMENTS FINANCIALS SUSTAINABILITY €382m c.54,000sqm €12.75 p.s. +80% Jun’22 GAV 1 Under refurbishment EPRA NTA 7 LEED/BREEAM certified >50% portfolio5 +8% YTD medium-term +11% GAV LfL growth2 70% 100% 100% Under active ass
Slide 3: 1H 2022 at a glance
EXECUTIVE SUMMARY HALF YEAR RESULTS 2022 1H 2022 at a glance Attractive returns and robust financial position Strategy to generate further material value upside › EPRA NTA1 EUR 12.75 per share, +33% since IPO and +8% YTD › Unique portfolio built through disciplined and accretive acquisitions at very
Slide 4: Our strategy
EXECUTIVE SUMMARY HALF YEAR RESULTS 2022 Our strategy TRANSFORMATIONAL PROJECTS HIGH QUALITY SPACE GENERATING ALPHA › Highly experienced team finding › Alleviating Madrid’s lack of Grade A › Prudent, value-driven, off-market and securing opportunities with true space strategy keeps entry costs low p
Slide 5: Developing differentiated, sustainable buildings
EXECUTIVE SUMMARY HALF YEAR RESULTS 2022 Developing differentiated, sustainable buildings Case Study: Botanic › Sustainability, wellbeing and technology integrated in the project from inception › 100% of the existing structure retained, resulting in CO2 savings that equate to planting 6,000 trees ›
Slide 6: Financial Results
HALF YEAR RESULTS 2022 Financial Results 6
Slide 7: Financial Results
FINANCIAL RESULTS HALF YEAR RESULTS 2022 Financial Results Attractive returns and robust financial position › Strong financial results, underpinned by our › Gross rental income for the 6-month period of asset management and operational performance EUR 2.8 million. Annualised GRI of EUR 6 million › G
Slide 8: Financial Results
FINANCIAL RESULTS HALF YEAR RESULTS 2022 Financial Results Robust financial position and significant financial flexibility Debt maturity profile as 30/06/2022 EURm unless specified 30/06/2022 Gross Debt 107.2 79.7% Liquidity 1 90 Net Debt 32.5 Net LTV (%) 8.5% Average debt maturity (years) 4 13.3% W
Slide 9: Portfolio Valuation
HALF YEAR RESULTS 2022 Portfolio Valuation 9
Slide 10: GAV growth
PORTFOLIO VALUATION HALF YEAR RESULTS 2022 GAV growth Steady growth in underlying asset values driven by our asset management activities... +31% €382m +11.1% vs. total GAV Jun’221 6-month LfL2 investment since IPO3 › GAV of EUR 381.6 million as of 30 June 20221 €38m €382m › Drivers of valuation upli
Slide 11: NAV growth
PORTFOLIO VALUATION HALF YEAR RESULTS 2022 NAV growth …and continuous shareholder value creation NTA per share1 +33% +8% NTA CAGR 12.75 since IPO 11.86 10.60 10.89 9.64 € p.s. IPO (Oct-2018) 2019 2020 2021 Jun-2022 › +33% NTA p.s. and +8% NTA p.s. CAGR since IPO despite the pandemic €380m › 101,664
Slide 12: Active Asset Management
HALF YEAR RESULTS 2022 Active Asset Management 12
Slide 13: High-quality portfolio drives record leasing activity
ACTIVE ASSET MANAGEMENT HALF YEAR RESULTS 2022 High-quality portfolio drives record leasing activity Quality space remains in short supply › Portfolio quality significantly ahead of market average › Madrid Grade A office stock only represents 9% of the city’s total office space (GLA)1 Madrid's lack
Slide 14: High-quality portfolio drives record leasing activity
ACTIVE ASSET MANAGEMENT HALF YEAR RESULTS 2022 High-quality portfolio drives record leasing activity Record lettings in the period › New leases totalling 8,258 sqm › In addition, 11,052 sqm committed or under offer › EUR 2.3 million of annualised income secured with new 71% LEASED lettings MM39 29%
Slide 15: Exciting redevelopment projects in progress
ACTIVE ASSET MANAGEMENT HALF YEAR RESULTS 2022 Exciting redevelopment projects in progress Portfolio reaching inflection point with first schemes near completion Redevelopment & Asset Management Plan 100% leased 2019 2020 2021 2022 2023 2024 ahead of works H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 complet
Slide 16: Exciting redevelopment projects in progress
ACTIVE ASSET MANAGEMENT HALF YEAR RESULTS 2022 Exciting redevelopment projects in progress Portfolio reaching inflection point with first schemes near completion Habana Offices leased ahead of works completion Location Madrid CBD GLA 4,356 sqm Forecast completion Q3 2022 Quality Class A Sustainabili
Slide 17: Exciting redevelopment projects in progress
ACTIVE ASSET MANAGEMENT HALF YEAR RESULTS 2022 Exciting redevelopment projects in progress Portfolio reaching inflection point with first schemes near completion Cadenza Location Madrid Campo de las Naciones GLA 14,302 sqm Forecast completion H2 2022 Quality Class A Sustainability LEED Gold, WELL Pl
Slide 18: Exciting redevelopment projects in progress
ACTIVE ASSET MANAGEMENT HALF YEAR RESULTS 2022 Exciting redevelopment projects in progress Portfolio reaching inflection point with first schemes near completion Dune Location Madrid Las Tablas/Manoteras GLA 12,842 sqm After refurbishment Forecast completion H2 2023 Quality Class A Sustainability LE
Slide 19: Growth Potential
HALF YEAR RESULTS 2022 Growth Potential 19
Slide 20: Strategy to generate further material value
GROWTH POTENTIAL HALF YEAR RESULTS 2022 Strategy to generate further material value Significant rental income upside (and NAV) potential IPO OCT’18 TODAY HIGH ALPHA PLAY 30% +33% 70% Under active +204% Stabilized1 EPRA NTA rental upside potential management per share (@ current ERVs) WITHIN NEXT 24-
Slide 21: Strategy to generate further material value
GROWTH POTENTIAL HALF YEAR RESULTS 2022 Strategy to generate further material value Visibility from rental income projections for current portfolio Current portfolio - gross rental income expected evolution (at current market rents) Yield: 6.0-6.5%2 +204% €20.7m Yield: 3.0%1 €6.8m €5.5m Passing GRI
Slide 22: Portfolio Overview
HALF YEAR RESULTS 2022 Portfolio Overview 21
Slide 23: Overview of portfolio property locations
PORTFOLIO OVERVIEW HALF YEAR RESULTS 2022 Overview of portfolio property locations ALCOBENDAS offices 1 MADRID 9 Habana FUENCARRAL Madrid CBD EL PARDO 2 MM39 LA MORALEJA 3 Pradillo Inner Madrid 4 RMA 5 Botanic A2/M30 MADRID-BARAJAS AIRPORT 6 Cristalia A-1 8 Campo de las Naciones 7 Cadenza 6 8 Dune L
Slide 24: Portfolio breakdown
PORTFOLIO OVERVIEW HALF YEAR RESULTS 2022 Portfolio breakdown Unique proposition with clear focus on Madrid offices built via discliplined and accretive acquisitions GAV by sector and location Portfolio breakdown Assets GLA Parking Acq Price Acq Cost Acq Price Occupancy Annualised GRI5 Annualised Gr
Slide 25: Portfolio in detail
PORTFOLIO OVERVIEW HALF YEAR RESULTS 2022 Portfolio in detail 1 Habana 2 MM39 3 Pradillo SECTOR: SECTOR: SECTOR: Offices Offices Offices ACQ. DATE: ACQ. DATE: ACQ. DATE: Dec’18 Dec’18-Feb’19 Oct’20-Sep’21 LOCATION: WELL H E A LT H - S A F E T Y R AT E D LOCATION: LOCATION: WELL H E A LT H - S A F E
Slide 26: Sustainability & Corporate Responsibility
HALF YEAR RESULTS 2022 Sustainability & Corporate Responsibility 25
Slide 27: Clear focus on sustainability and social responsibility
SUSTAINABILITY & CORPORATE RESPONSIBILITY HALF YEAR RESULTS 2022 Clear focus on sustainability and social responsibility Sustainability strategy Environmental Responsible Sustainability leadership business › Low-carbon repositioning, with strong › Portfolio LEED/BREEAM and WELL › Responsible landsca
Slide 28: Appendix
HALF YEAR RESULTS 2022 Appendix 27
Slide 29: H1 2022 Financials
APPENDIX HALF YEAR RESULTS 2022 H1 2022 Financials Consolidated Income Statement (IFRS) Consolidated Balance Sheet IFRS IFRS EURth (unless otherwise specified) 30/06/2021 31/12/2021 30/06/2022 EURth (unless otherwise specified) 30/06/2021 31/12/2021 30/06/2022 Gross Rental Income (GRI) 2,528 5,192 2
Slide 30: Disclaimer
APPENDIX HALF YEAR RESULTS 2022 Disclaimer This document is the property of Árima Real Estate SOCIMI, S.A. (the provided by third parties. Neither the Company nor its legal advisors and This document includes certain alternative performance measures ("APMs") "Company" or "Árima") and has been prepar
Slide 31: Árima Real Estate SOCIMI S.A.
Árima Real Estate SOCIMI S.A. Edificio Torre Serrano - Serrano, 47 28001 Madrid www.arimainmo.com
Árima Real Estate SOCIMI — H1 2022 Earnings Presentation on 6ix